Tien Company has two products: Product A has a contribution margin per unit of ($4) and Product

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Tien Company has two products: Product A has a contribution margin per unit of \($4\) and Product B has a contribution margin of \($6\) per unit. Calculate the weighted average contribution margin if Tien has a 50/50 sales mix. Explain how a shift in the sales mix would affect Tien’s weighted average contribution margin and its break-even point.

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Managerial Accounting

ISBN: 9780078110771

1st Edition

Authors: Stacey WhitecottonRobert LibbyRobert Libby, Patricia LibbyRobert Libby, Fred Phillips

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